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ECONOMICS iGCSE > 1.2 BUSINESS ECONOMICS > Flashcards

1.2 BUSINESS ECONOMICS Flashcards

1
Q

factors of production

A

resources used to produce goods and services, which include land, labour, capital and enterprise

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2
Q

production

A

process that involves converting resources into goods or services

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3
Q

human capital

A

value of the workforce or an individual worker

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4
Q

labour

A

people used on production

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5
Q

working capital or circulating capital

A

resources used up in production such as raw materials and components

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6
Q

fixed capital

A

stock of ‘man-made’ resources,such as machines and tools, used to help make goods and services

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7
Q

entrepreneurs

A

individuals who organise the other factors of production and risk their own money in a business venture

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8
Q

capital intensive

A

production that relies more heavily on machinery relative to labour

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9
Q

labour intensive

A

production that relies more heavily on labour related to machinery

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10
Q

primary sector/industry

A

production involving the extraction of raw materials from the earth

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11
Q

assembly plants

A

factory where parts are put together to make a final product

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12
Q

secondary sector/industry

A

production involving the processing of raw materials into finished and semi-finished goods

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13
Q

tertiary sector/industry

A

production of services in the economy

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14
Q

de-industrialisation

A

decline in manufacturing

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15
Q

productivity

A

rate at which goods are produced, and the amount produced related to the work, time, and money needed to produce them

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16
Q

job rotation

A

practice of regularly changing the person who does a particular job

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17
Q

piece rate

A

amount of money that is paid for each item a worker produces,rather than for the time taken to make it

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18
Q

division of labour

A

breaking down of the production process into small parts with each worker allocated to a specific task

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19
Q

specialisation

A

production of a limited range of goods by individuals, firms, regions or countries

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20
Q

costs

A

expenses that must be met when setting up and running a business

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21
Q

fixed costs (overheads)

A

costs that do not vary with the level of business

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22
Q

variable costs

A

costs that change when output levels change

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23
Q

total cost

A

fixed costs and variable costs added together

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24
Q

scale

A

size of a business

25
Q

diseconomies of scale

A

rising average costs when a firm becomes too big

26
Q

economies of scale

A

falling average costs due to expansion

27
Q

internal economies of scale

A

cost benefits that an individual firm can enjoy when it expands

28
Q

bulk buying

A

buying goods in large quantities, which is usually cheaper than buying in small quantities

29
Q

external economies of scale

A

cost benefits that all firms in an industry can enjoy when the industry expands

30
Q

competition

A

rivalry that exists between firms when trying to sell goods to the same group of customers

31
Q

barriers to entry

A

obstacles that might discourage a firm from entering a market

32
Q

innovative

A

commercial exploitation of a new invention

33
Q

product differentiation

A

attempt by a firm to distinguish it’s product from that of rival

34
Q

market niche

A

smaller market, usually within a larger market or industry

35
Q

monopoly

A

situation where there is one dominant seller in a market

36
Q

new entrant

A

company that starts to sell goods or services in a market where they have not sold them before, or one of these goods or services

37
Q

price maker

A

where a dominant business is able to set the price charged in the whole market

38
Q

patent

A

license that grant permission to operate as a sole producer of a newly designed product

39
Q

natural monopolies

A

situation that occurs when one firm in an industry can serve the entire market at a lower cost thant would be possible if the industry were composed of many smaller firms

40
Q

market segments

A

groups of customers that share similar characteristics, such as age, income, interests and social class

41
Q

oligopoly

A

market dominated by a few large firms

42
Q

interdependence

A

where the actions of one country or large firm will have a direct effect on others

43
Q

price war

A

where one firm in the industry reduces price causing the others to do the same

44
Q

niche market

A

market for a product or service, perhaps an expensive or unusual one, that does not have many buyers, but that may make good profits for companies that sell it

45
Q

cartel

A

whee a group of firms or countries join together and agree on pricing or output levels in the market

46
Q

value-added (products or services)

A

products or services have an increased value because work has been done on them, they have been combined with other products and so on; this increase in value to the buyer is what the buyer pays for

47
Q

wage rate

A

the amount of money paid to workers for their services over a period of time (that is, the price of labour)

48
Q

derived demand

A

demand that arises because there is demand for another good

49
Q

labour mobility

A

easy with which workers can move geographically and occupationally between different jobs

50
Q

boom

A

time when business activity increases rapidly, so that the demand for goods increases, prices and wages go up, and unemployment falls

51
Q

boom and bust

A

when an economy regularly becomes more active and successful and then suddenly fails

52
Q

closed shop

A

company or factory where all the workers must belong to a particular trade union

53
Q

secondary picketing

A

workers in one workplace or company strike in a group at a particular location in order to support the striking workers in a different workplace or company

54
Q

inflation

A

rate at which prices rise, a general and continuing rise in prices

55
Q

anti-competitive practices (or restrictive trade practices)

A

attempts by firms to prevent or restrict competition

56
Q

fit for purpose

A

usable (by a consumer) for the purpose for which it was intended

57
Q

subsidiaries

A

companies that are at least half-owned by another company

58
Q

minimum wage

A

minimum amount per hour which most workers are legally entitled to be paid

ECONOMICS iGCSE (5 decks)

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